Question 1

A company's distribution system is an important part of the value chain.

Accepted Answer

A) True 
 B)False

Question 2

Joe's Bottling Company provided the following expense information for July:

What is the total cost for the marketing category of the value chain?

Accepted Answer

A) $71,000 
B) $179,000 
C) $186,000 
D) $244,000

Question 3

Company X sells widgets.The following information summarizes the company's operating activities for the year:

What is cost of goods sold?

Accepted Answer

A) $9,500 
B) $6,000 
C) $8,000 
D) $13,000

Question 4

An accounting firm would be classified as a

Accepted Answer

A) manufacturing company. 
B) merchandising company. 
C) simple company. 
D) service company.

Question 5

The financial statements of a merchandiser are more complex than those of a manufacturer.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following would not be included in the value chain?

Accepted Answer

A) Website development costs 
B) Costs to deliver product to retail outlets 
C) Costs of print advertisements 
D) All of these costs would be included as part of the value chain.

Question 7

Use the appropriate letter(s)to indicate if the following costs would be found on the income statement of a
A.service company.
B.merchandising company.
C.manufacturing company.
You may use more than one letter for each answer.

Accepted Answer

The answer of Use the appropriate letter(s)to indicate if the...

Question 8

Subtracting the costs of one alternative from the costs of the other alternative would be called the ________ cost.

Accepted Answer

A) sunk 
B) imported 
C) alternative 
D) differential

Question 9

The income statements for both a merchandiser and manufacturer would include which of the following?

Accepted Answer

A) Operating expenses 
B) Direct labor incurred 
C) Direct materials used 
D) Cost of goods manufactured

Question 10

A marginal cost is the cost of making one more unit of a product.

Accepted Answer

A) True 
 B)False

Question 11

Delivery expenses are charged to which of the following areas?

Accepted Answer

A) Distribution 
B) Customer service 
C) Production or purchases 
D) Marketing

Question 12

A company's total costs are calculated by

Accepted Answer

A) subtracting total fixed costs from total variable costs. 
B) subtracting total variable costs from total fixed costs. 
C) subtracting total fixed costs and total variable costs from sales. 
D) adding total fixed costs to total variable costs.

Question 13

Sydney's Barbecue manufactures barbecue equipment for consumers and businesses in the marketplace.The managerial accountant at Sydney's Barbecue reported the following data: 
What is the average manufacturing cost per unit at Sydney's Barbecue? (Round your answer)

Accepted Answer

A) $58 
B) $68 
C) $75 
D) $85 
E) $95

Question 14

Costs can be either direct or indirect,depending upon the cost object.

Accepted Answer

A) True 
 B)False

Question 15

Describe service,merchandising,and manufacturing companies.

Accepted Answer

The answer of Describe service,merchandising,and manufacturing companies....

Question 16

Page's sells books.The following information summarizes the company's operating expenses for the year:

What is operating income?

Accepted Answer

A) $12,000 
B) $102,000 
C) $108,000 
D) $17,000

Question 17

An example of a fixed cost for a manufacturer would be which of the following?

Accepted Answer

A) Sales commissions 
B) Salary of plant manager 
C) Direct materials 
D) Delivery costs

Question 18

London Plastics has monthly fixed costs of $84,000,while its variable costs are $4.00 per unit.If the sales price of a unit is $15.00 and London Plastics sell 14,000 units,the company's total sales revenue will be

Accepted Answer

A) $154,000. 
B) $210,000. 
C) $84,000. 
D) $70,000.

Question 19

Challenge Tennis & Recreation's operating activities for the year are listed below.

What is the cost of goods sold for the year?

Accepted Answer

A) $201,000 
B) $164,000 
C) $174,000 
D) $97,000

Question 20

A company is deciding whether to purchase production equipment that can produce units more quickly than the current equipment.Which of the following costs would be relevant to its decision?

Accepted Answer

A) The original purchase price of the current machinery 
B) The additional labor required to run the new equipment 
C) The accumulative repairs costs of the current machinery over the years 
D) The cost of raw materials

Exam 2: Building Blocks of Managerial Accounting

A company's distribution system is an important part of the value chain.

Joe's Bottling Company provided the following expense information for July: What is the total cost for the marketing category of the value chain?

Company X sells widgets.The following information summarizes the company's operating activities for the year: What is cost of goods sold?

An accounting firm would be classified as a

The financial statements of a merchandiser are more complex than those of a manufacturer.

Which of the following would not be included in the value chain?

Use the appropriate letter(s)to indicate if the following costs would be found on the income statement of a A.service company. B.merchandising company. C.manufacturing company. You may use more than one letter for each answer.

Subtracting the costs of one alternative from the costs of the other alternative would be called the ________ cost.

The income statements for both a merchandiser and manufacturer would include which of the following?

A marginal cost is the cost of making one more unit of a product.

Delivery expenses are charged to which of the following areas?

A company's total costs are calculated by

Sydney's Barbecue manufactures barbecue equipment for consumers and businesses in the marketplace.The managerial accountant at Sydney's Barbecue reported the following data: What is the average manufacturing cost per unit at Sydney's Barbecue? (Round your answer)

Costs can be either direct or indirect,depending upon the cost object.

Describe service,merchandising,and manufacturing companies.

Page's sells books.The following information summarizes the company's operating expenses for the year: What is operating income?

An example of a fixed cost for a manufacturer would be which of the following?

London Plastics has monthly fixed costs of $84,000,while its variable costs are $4.00 per unit.If the sales price of a unit is $15.00 and London Plastics sell 14,000 units,the company's total sales revenue will be

Challenge Tennis & Recreation's operating activities for the year are listed below. What is the cost of goods sold for the year?

A company is deciding whether to purchase production equipment that can produce units more quickly than the current equipment.Which of the following costs would be relevant to its decision?